The seller delivers the deed and the buyer pays
the purchase price in the step referred to as
Detailed Answer
d. The process of transfer of title and settlement
of accounts takes place at the
closing.
2
The approach to value that considers depreciation
is the
Detailed Answer
a. In the cost approach, the property’s
depreciated value is estimated.
3
A building permit may be issued without question
even if the proposed structure violates
existing
Detailed Answer
b. Deed restrictions are private and nongovernmental,
set by previous owners of
the property. They are enforced through
neighbors’ lawsuits, not by local building
authorities.
4
For a real estate agency relationship to be
enforceable, which of the following is NOT
required?
Detailed Answer
b. The principal cannot empower the agent
to do anything the principal cannot do.
There is no guarantee that the principal
has the necessary funds.
5
Elderly homeowners can sometimes tap the
equity in their home without having to make
monthly payments by using a
Detailed Answer
b. With a reverse mortgage, the homeowner
receives a lump sum or monthly checks,
and no repayment is made until the property
is sold or the owner dies.
6
Which of the following statements is/are true
regarding FHA?
I. FHA insures loans but does not guarantee
them.
II. FHA has a program 203b that is for one- to
four-family dwellings.
III. FHA loans are funded by conventional
lenders.
Detailed Answer
d. FHA insures loans but does not make the
loans.
7
George Brown owns 150 acres of farmland
and has posted “No Trespassing†signs on
the fence surrounding the property. He can
enforce this notice by virtue of his
Detailed Answer
b. The right to exclude is one of the rights
contained in the bundle of legal rights of
ownership.
8
An oral agreement between a lessor and lessee
is legally
Detailed Answer
c. An oral lease for one year or less is
enforceable and creates a tenancy at will.
9
Although the term “purchase money mortgageâ€
applies to any loan that finances the
purchase of real estate, it is commonly used
to refer specifically to a
Detailed Answer
a. Seller financing is often referred to as a
purchase money mortgage.
10
Any federally related loan may require the
borrower to carry special insurance if the
property is located in
Detailed Answer
b. The government issues flood hazard
maps, and for mortgage loans within
those areas, borrowers must carry flood
insurance, which is available from the federal
government.
